How to Avoid a Margin Call? Although margin calls are part and parcel of trading on the margin, ther
How to Avoid a Margin Call?
Although margin calls are part and parcel of trading on the margin, there are several steps you can take to decrease your chances of receiving a margin call:-
1. Leverage Your Account Sufficiently:
Limiting your leverage is the best way to minimize the risk of getting a margin call. When using high leverage, both gains and losses are amplified. Hence, if you use too much leverage, your equity might easily be wiped out. Try sticking to conservative leverage ratios you can handle.